38 Studios laid off its entire workforce according to an unconfirmed report on WPRI.com where they have an email purportedly sent to the company's staff, which they say consisted of 379 employees a of March 15. The Verge adds they've been informed by "a source familiar with the company" that 38 Studios also closed both its Rhode Island headquarters and its subsidiary studio Big Huge Games (thanks nin). They also note there is a semi-confirmation of this in a tweet from Colin Campbell, lead world designer at Big Huge Games: "Big Huge Games was home for my wife and me for our adult lives so far. I'll miss it terribly, but so proud. Good night and good luck." The Verge also quotes Governor of Rhode Island Lincoln Chafee attributing the closure to Kingdoms of Amalur: Reckoning, saying the RPG "failed." They note that the game sold approximately 1.2 million copies in 90 days and Chafee says experts told him it needed to sell three million copies to break even. In 2010 Rhode Island loaned 38 Studios $75 million.

Financial troubles at the developer founded by former major league baseball pitcher Curt Schilling surfaced less than two weeks ago, but after some drama involving a bounced loan payment check and allegations of a missed payroll, things seemed to be on the rise, with word that the loan payment cleared and that the company's MMORPG codenamed Project Copernicus was expected in a year. In an interesting side note, Rock, Paper, Shotgun points out the Rhode Island Economic Development Corporation has posted 38 Studios Public Documents with all the details on its financial dealing with the company.

This state is notorious for its politicians which Alan Dershowitz has called "The most corrupt in the country". The State has a checkered past with rumored Mob involvement in municipal projects (a running joke here is you'll never see a public construction project being done by a company that doesnt have a vowel in the owners last name). Appointments to positions and elected officials look at their positions as an opportunity to enrich themselves and friends. For example, "The Providence Place Mall" was pitched as a high end mall with expensive boutique outlets, gourmet dining (Think Copely Place in Boston) etc. Studies showed it would be untenable financially since the number of high income residents who could afford to shop there were'nt enough to support the place. The study results landed on deaf ears, bonds were floated, deals made without public input. It is now allowing in "Dollar Tree" and Trading card shops....ie; anyone who is willing to pay the rent.

38 Studios was a similar deal. A few politicos begged the company to locate here with tax breaks and funding. It was put through with out a single bit of input from taxpayers. Not a single politician is claiming responsibility for the wrongheaded deal to begin with.

This was seen by many of us before the papers were even signed for the Studios to move in. As usual we get to foot the bill for some scumbags who feel the state is their personal Kingdom